Test Drive 360 Euro price due to market conditions - Atari
Not possible to match $39.99.
The significant difference between US and European pricing of Test Drive Unlimited is down to differences in installed bases and local pricing, Atari has said.
"The price in the US reflects the local Xbox 360 market situation", a spokesperson told Eurogamer today, primarily referring to the massive difference in the relative installed base sizes.
Earlier this month the company revealed that the US version of TDU on Xbox 360 would retail for $39.99, but subsequently admitted that the UK price was £49.99 - although actual high street and e-commerce prices will likely fall between £40 and £50.
"Additionally the US has a significantly larger Xbox 360 installed base, with a much bigger Xbox Live Gold membership," the spokesperson added.
In other words, it's possible for Atari to release a 360 game in the US at a lower-than-usual price and still make a decent return, but it simply isn't the same for them over here.
"Innovation should be available to everyone, not a privilege for those can afford high price tags," Atari CEO Bruno Bonnell said when the company announced the US price point. Perhaps it was a cry for help as much as anything.
Test Drive Unlimited is due out on Xbox 360, PC, PS2 and PSP later this year.
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Comments (101) Latest comment 6 years ago
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I would like to see the cost structure, because these games are physically made in China anyway, and they all have the same sunk costs. Differences can only be due to more expensive European distribution and marketing costs and translation but not to the point where a game costs more than twice as much.
Gamers should send a clear message and not buy this. It boils down to the following. Why are they charging twice as much? Why does a dog lick its balls? Beause they can!
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I dunno what their games are like now though, as I've avoided them like the plague for the last year or so
But releasing a game at effectively a budget price point in one region, but full price in another? That's bullshit.
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Not much of a surprise, really. The "budget priced" Table Tennis is 50€ in Finland ($62).
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It's still a rip off though given the US price is in Dollar's.
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We are very different markets and its a commercial decision.
I was going to get the game anyway after the demo, so it really doesn't matter to me if they pay £1 or £100.
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"I buy from Gameplay anyway, so my games cost £39.99.
We are very different markets and its a commercial decision.
I was going to get the game anyway after the demo, so it really doesn't matter to me if they pay £1 or £100.
ignore poster"
Enjoy the Atari Xmas bash. Should be well funded...
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I hope most poeple import their copies.
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That's not really fair...Tesco are the only company that can AFFORD to offer such a deal as they buy games in such large quantities. Other high street retailers such as Gamestation, Game et al have to pay more for their games than Tesco hence the higher price...and that's forced by Atari.
If the publishers dropped the price, and eventually they will, we would be ok.
Unfortunately, if PS3 games are going to cost the rumoured £60 then they make 360 games look cheap which may maintain that price for longer.
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And before anyone starts ranting, I know that's the way it's always been, but that doesn't make it right.
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+ Avogadro's constant
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Your attempt at spotting a plant is unfortunately unsuccessful!
I simply enjoyed the demo.
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What's your profit margin on that?
C*nts.
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What Tax ???
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To me if they can not compete and that is the reason for the high price point then they have serious problems because as a consumer I can tell you I will not be buying from stores that charge 25% more for a game.
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On the subject of US sales tax, it is only applicable in some states and is usually around 10% so only adds a few dollars on to the price anyway.
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"Innovation should be available to everyone, not a privilege for those can afford high price tags..."
he ment
"Innovation should be available to everyone (in the US), not a privilege for those can afford high price tags..."
Bunch of arse.
I was going to buy this regardless of the price, now i'd just feel like i'm being ripped off.
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But the reason there's a larger installed base is that the Americans get their consoles cheaper and their other games for half price.
Charging double for a game and then complaining that it doesn't sell well is a self-fulfilling prophecy.
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Other than Oblivion, I've yet to buy one game on the Xbox 360 that I thought was worth £50 RRP. Good job I pre-order all my games from Gameplay.com for £38 each then, eh, otherwise I wouldn't buy any Xbox 360 games at all. Considering the majority of its games are ports from other formats including the PC, £40 RRP should be the common pricepoint anyway.
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39 dollars, that should be 29.99 over here then.
probably a c**p game anyway like all atari games.
i'll be waiting for it to be 17.00 preowned 2 weeks after release b4 i get it
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I would be tempted, should the price was right (yet, given the reception of the demo -which I haven't played- maybe I shouldn't
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It's also self-serving prophecy. They jam the prices up high, nobody buys it thus proving themselves right about the market and so they jam the prices up high.
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Charging double for a game and then complaining that it doesn't sell well is a self-fulfilling prophecy. "
That's part of the reason, but I'd say an even bigger part of the reason for their install base is down to a simple population difference - USA: 295 million vs UK: 60 million. There's 4 times as many of them, so it stands to reason that their install base is (guessing here) at least 4 times as large as ours.
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However, why it is 39.99 over there and 49.99 over here regardless of currency is bullshit.
I thought Atarifrogrames was a European company anyway?
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"What confuses me is that you can import $59.99 region-free games for under £35 so even if you were caught by Customs you'd still pay less than the £49.99 so why on earth is it not possible to price Test Drive Unlimited (or Top Spin 2 for that matter) at a penny shy of £40 in this country? The answer I think lies with the sheer greed of the publishers."
The £35 + possible customs is an internet price though isn't it. Which is about the same as most UK internet prices i.e. £39.99.
I'm with the boycott brigade on this, particularly considering Bruno's comments. At £30 I would have walked away with this as an impulse purchase. At £50 I won't as I still have too many questions raised by the demo on handling and graphical smoothness.
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Like some other people I will wait until I can get a preowned copy.
Stupid pricks!
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Yeh but they aren't talking about the UK alone - this pricing situation affects the whole of Europe who's population I would imagine is fairly similar to the population of America.
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[link url=http://forum.games radar.com/viewtopic.php?t=91608&start=0&sid=552c3dcac189ec46 eca9b995a735b570
]http://fo rum.gamesradar.com/viewtopic.ph...[/link]
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oh and yes, Dead Rising is vastly more desirable at this time than TDU.
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I know everyone is enjoying being all angry, but the comment above is actually true. Its called economies of scale and Atari didn't invent it.
Plus, £49.99 is RRP for all XB360 games, so its not like they are acting any differently to any other publisher in the EU is it?
They are simply flogging it a discount in the US. I believe McDonalds food is cheaper in the US for the same reasons. Should we be getting angry about that too?
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I pay £120 a year and so far have got through about 13 games.. and I only started 4 months ago.
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Indeed and if that ratio were consistant then there would only be approx 800,000 360's in the country but we have around 1.6 million which give the UK a higher "360 per head" count.
Oh how Atari look stupid. I hope they companies blows smoke and goes into liquidation.
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I just hope that the TD:U marketplace packs will be cheaper here, but yeah right!
cnuts
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I thought it would be prudent to draw your attention to one of the many forum threads on the internet that focus on Atari's upcomming release.
http://ww w.eurogamer.net/article_discuss...
I am with the boycott brigade on this one I am afraid. There is absolutely no possible justification for the grotesque pricing difference between the UK and US versions. It merely highlights the company's greed (not best practice given Atari's current financial situation) A £30 price point would have ensured great sales and snagged many a impulse purchase (See Rockstar's Table Tennis for example of pricing).
I for one will either not buy the game on principle (I own all consoles and there is more than enough choice out there Including other driving games for the 360), or wait for the game to become available in 2nd hand form for which I believe Atari's profit will be £0.00.
Your comments on this would be appreciated and posted onto the forums of Eurogamer.net, ign.com, gamespot.com, edge-online.com, computerandvideog ames.co.uk to name a few.
Yours Sadly
****** *****
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Any Company that is willing to treat it's customer base like this doesn't deserve our money.
I fully expect that they play silly buggers with the price of marketplace content as well.
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"Indeed and if that ratio were consistant then there would only be approx 800,000 360's in the country but we have around 1.6 million which give the UK a higher "360 per head" count."
That isn't really the point though. "360 per head" counts don't walk itno stores and buy games. Their bottom line is how many actual console owners are there in the market place.
@Fatnick
They have to make profit though don't they. Shipping more units than a competitor is a hollow victory is you lost money on the deal whilst they made money.
For the record, I wasn't planning to buy it AND I totally agree with not buying something that you think is overpriced. But there is really no need for everyone make such a song and dance about it and talk of boycotting.
We are customers, if we don't like the product and the price we don't buy it, same as its always been. People seem to have utterly overlooked the fact that Atari is not actually doing anything new here.
People have also conveniently overlooked the previous comment by Turrican which summed things up perfectly. So here it is again,
"If they had charged full price in the US no one would have complained"
Now everyone either just calm down or dedicate your rage to some PROPER causes that actually matter.
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Yes, if the price in the US wasn't lower noone would be complaining. However, the price is lower so that fact is pretty much irrelevant. If they need to sell it for £50 here in order to make a profit, we are basically subsidising the cheaper US pice which, in my mind, is something to be complaining about.
As for the more sales vs more profits, I think that your statement would be true for every other console other than the 360. However, considering the success of addons such as the PGR3 style/speed packs, there's certainly a good argument for using cheaper prices to pull in more gamers who you can fleece later with addons. Providing they don't go mental with the addon pricing(hello Ubisoft), its a win-win situation for everyone - we get cheaper inital prices and games which stay newer for longer, they, in the long run, get higher long term profits.
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Let me put it this way. If you and your best friend were carrying the same exact boxes in a warehouse but you recieved 20 pounds and hour and he recieved 30 pounds an hour doing the same job, would you be happy?
And off coarse you wouldn't complain if both of you were getting the same amount of money. What's your point?
Now if the difference was more marginal, like say, a couple of quid; then you might consider it not worth it to start a fight and ultimately risk your friend getting paid lower.
If anything, this situation highlights how expensive the prices are over here to begin with.
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I know, my comment re: the 360's per head was a response/ addition to a comment made earlier. I agree that if the all that should actually matter is the global live subscription count.
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I thought it would be prudent to draw your attention to one of the many forum threads on the internet that focus on Atari's upcomming release.
[link url=http://ww w.eurogamer.net/article_discuss...
]http://ww w.eurogamer.net/article_discuss...[/link]
I am with the boycott brigade on this one I am afraid. There is absolutely no possible justification for the grotesque pricing difference between the UK and US versions. It merely highlights the company's greed (not best practice given Atari's current financial situation) A £30 price point would have ensured great sales and snagged many a impulse purchase (See Rockstar's Table Tennis for example of pricing).
I for one will either not buy the game on principle (I own all consoles and there is more than enough choice out there Including other driving games for the 360), or wait for the game to become available in 2nd hand form for which I believe Atari's profit will be £0.00.
Your comments on this would be appreciated and posted onto the forums of Eurogamer.net, ign.com, gamespot.com, edge-online.com, computerandvideog ames.co.uk to name a few.
Yours Sadly
****** *****"
Sadly, indeed.
You're already posting on an article based on comments that Atari have given in response to an outcry; do you expect them to give you a more detailed response?
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edit: for some damn reason it keeps truncating my objection to one comment about "being shafted by whinging americans"
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No publisher thinks 'We're going to sell loads in this territory so let's drop the price.'.
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To give an extreme example, a friend of mine in the textiles industry paid over £20,000 for a fairly simple piece of stitch-weaving software. It cost so much becuase it only sold a few hundred copies worldwide.
Why then do fucking holidays cost more when the companies have guaranteed trade in the summer? Why is Gas going up when it's CONSTANTLY used? Now they're the real wankers!
P.S. (and off-topic) Cyber-Nicco: PRS = performing rights society. They collect money from the sales of music and distribute it to artists and labels. It's why blank CDAudio CDs cost more than blank data CDs: a small amount is paid to PRS as it is assumed that music will be copied onto them.
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The comments already made by Atari to which you refer are a poor excuse IMHO. I am merely pointing out to them that there is still significant discontent within the gaming community, that they CAN'T justify it no matter what bullsh!t they give us and that this is what the result is. I am merely making my own voice heard. The likelyhood of it making any difference? virtually Zero. The likelyhood of me getting a decent response if any? Virtually Zero. At the end of the day I will be happy knowing that I have told them directly where to stick their game based on this issue and I will not buy it. I'm happy with that. I merely thought I would share that with the forum. Mayhaps that was a mistake as these forums appear to be more inclined to people people poo pooing others or being very childish (you dont fall into the latter, only the former.)
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"Yes, if the price in the US wasn't lower noone would be complaining. However, the price is lower so that fact is pretty much irrelevant."
Lol, I'm not sure of your logic there. I think Turrican's point is absolutely relevant when viewing what I would describe as over reaction and a lack of context.
"there's certainly a good argument for using cheaper prices to pull in more gamers"
I totally agree, buts its a fine balancing act, the details of which are specific to each situation. Atari know all about pricing correctly for the market, so they wouldn't be so stupid as to simply wade in with a higher price with dollars in their eyes. If a lower price meant more profits, that what they would be doing I'm sure ('cos I suspect their market research is rather better than ours).
@Segnit
"Let me put it this way. If you and your best friend were carrying the same exact boxes in a warehouse but you recieved 20 pounds and hour and he recieved 30 pounds an hour doing the same job, would you be happy?"
Thats an appalingly contrived example that of course makes my point ridiculous. I've a better version.
Q. Me and friend are carrying boxes of the same weight to two different warehouses (though we both have to walk the same distance and expand the same amount of engery). But he lives and works in the US and I live and work in the UK. Am I surprised that his wage isn't the same as mine?
A. Of course not. He is in a different country.
I think thats a much better example
@Caimbeul
Fair enough, I missed your point.
Rambaldi makes good points. I'm not saying everyone should buy the bloody game. I'm just saying that pricing varying by territory happens for proper reasons, whether we like it or not.
Its not new, its not greedy, its just the ecnonomic of world business. The reason I am being so beligerant (and I am, I know it) about this issue is that it kind of riles me when people ignore facts that are either right under their noses, or could be found for minimal effort, just so they can sound off about how company X or Y is evil and money grabbing.
Exercising your power as a consumer is awesome and I ramble frequently enough about it on these pages. Just don't treat it like a weapon when its just part of normal life.
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Do I fall into the second category?
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It is basically profiteering, they feel that they can charge what they want. Which is fine as that is how a market economy works. However I can exercise my right as a consumer not to subsidise the US market. Which is what I will do.
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There isn't a lack of context. There would be if $40 was the cost of a normal full price game, but it isn't. Even in the context of their own market, the US is getting TD at a discounted price, while in the context of our own market we're still paying top-dollar.
"Atari know all about pricing correctly for the market, so they wouldn't be so stupid as to simply wade in with a higher price with dollars in their eyes."
Oh i don't know...atari's current financial difficulties would perhaps suggest that they are not as knowledgable as they should be.
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___________________________________________________________< br />
I think the reason most companies tend to get away with this (greedy pricing) is because the british public simply dont vote with their wallets (with a few exceptions amongst us here).
I simply cannot see (nor can Atari explain) the excessive differences in cost.
Japan is arguably one of if not the most expensive country in the world and yet software is cheaper there too (usually). The fact is they are taking us all for mugs and I for one will not stand for it.
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September has plenty to offer in competition so I'm sure it'll be hitting the bargain section of Play sooner rather than later.
Bit of a shame really, I was looking forward to it but Infogrames can swivel, it being really dependent on the multiplayer aspects is going to make taking the piss over pricing a bit of a serious error.
Oh well I'm sure they'll sell lots of stuff on marketplace, I'm not sure who too though...
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Utter, utter madness.
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I agree with everything you're saying and you are extremely reasonable. It's a rare find. But... and that's a big but, Atari must have set a new record right now. In one country they are selling their product for $40 and in another country above $90. That's a first.
The problem isn't HUGE, but there is a problem. Now whether it's the governments to blame or Atari, is an entierly different topic.
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Lets say Atari program the game in the US, total salaries, rent, overheads etc mean their total investment is $10m. They then arrange with their factory in China, to produce 1 million copies of the game, lets say thats another $5 million. Right now Atari has spent $15 million and they have 1 million disks sitting in China to show for it. Of this, they send 600,000 to the US, 390,000 to Europe and 10,000 to Japan. Now the selling starts. So, my question is, where exactly is the economies of scale that necessitate a lower price for the US? Of course I am simplifying but you get the idea. It could be that the European firm has to pay royalties to the US firm for every copy sold but this money ends up within Atari anyway. Also remember that, on average, the effective company tax rate in the US is higher than in Europe. Hence, try and get your US income as low as possible and max out your European income. Perhaps they have some tax losses also that they are trying to utilize. Who knows. But they should just stop lying to us Joseph Goebbels style or taking us for idiots. Thats their f*cken economy of scale. So, if you want to buy this game you know what to do
/assumes the position
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Oh no they've just lost one of their best customers!
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A) The price of games in the UK.
B) The games that publishers never bring to the UK, e.g. Katamari Damacy.
In 1996 I bought a bloody big Toshiba TV, swapped my PAL Playstation, SNES and MD for NTSC ones and NEVER looked back - back then it was because of shitty borders and speed, then the internet kicked in and now I can go to Canadian websites and buy all the latest releases for exactally the sort of money this release is highlighting, with FREE postage and months before the UK release, if indeed it ever appears!
Get someone to bring back a US machine for you, or buy one here - the extra you spend on the system here will be recovered in a couple of games anyway!
It does not make it right, but it is clear here in the UK we will always get screwed on price for everything, from games to CD's to Petrol - we can't do anything about the last one but get importing the rest and stop moaning!
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I mean, could you imagine how furious we Americans would be if games cost more in California and New York, than they did in Tennesee and New Mexico (much poorer, comparatively)?
This, and many products not heavily infulenced by tarrifs, really should be marketed more "globally". They are just charging what they believe they can in different markets.
I hate to say it, but if a large enough proportion of European consumers refused to pay grossly inflated prices on games and consoles, I am convinced the prices would come down. Now getting everyone together on that would probably prove quite difficult...
So, import your consoles and games till then, and please ask EG to review games when they are first released and not wait for the European release dates! (unless they will be substantially different)
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You make good points and I think maybe I was oversimplifying things to make my case (I try not to slip into having an agenda, but I know I still do it sometimes).
I'm not sure I agree that the product shipped in Europe is "the same" as the one shipped in the US. Sure, the vast majority of the code and assets on the disc are the same, but each version is treated as an independant item (a SKU in the business) and is marketed and priced accordingly.
I'm very much at risk of rambling on ad infinitum, so I'll make one last comment and then just bough out (I'm enjoying reading many of the well informed posts on here, from both sides of the fence).
My parting point.
Every company will charge the very highest price they can for their product without impacting their overall profit. That is simply part of business. They juggle the figures and try to second guess what people will be prepared to pay. Sometimes they get it right and sell shed loads of something that poeple view as a bargain, sometimes they get it wrong and piss everyone off (or underprice and lose out that way). But the principle is the same across all industries.
Atari are not doing anything new here, its the same old customer choice situation as it has always been. I don't expect Atari to explain to me the mechanics of their pricing, I don't even need that info in order to make my descision. Atari are categorically NOT ripping anyone off, because we all have a CHOICE as to whether we buy their products. And if we don't, as many have said, the pricing of the market will adjust to suit us (or Atari will go out of business).
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So it makes sense to sell a cheap game to 3 million gamers, rather than maximise sales in a region of 1.6 million gamers does it?
And ofcourse there are the implications of ripping the Europeans off, and also might i add that since its been openly discussed that the most important region very soon in Video gaming is to be Europe, hence why all the next gen platfroms and the like are being released worldwide. It would appear Atari dont want to be another company keeping the Europeans sweet.
Oh well, im sure once they go under next year after another terrible financial period, they'll have Microsoft to show them how to keep their punters happy when they throw them a bone by putting Atari classics on the Xbox Live Arcade.
Ciao Atari
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Some idiot stated:
"Everything is cheaper in America guys: economies of scale and all that. They can afford to reduce the price because they're guaranteed a much bigger market. It kind of makes sense really."
Scale economies depend on a large fixed cost amortised over a larger unit sale
The largest fixed cost of a game is the development. It is amortised over all terrortories. The argument above therefore is hogwash, and probably posted by some Atari minion
Screw Atari. And do boycott their games. That is the only way to speak to them in a language they understand
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so let me get things straight. Microsoft knew the X360 should have a lower price tag in Japan because the expected to sell less.
so Atari should match that and sell the game for LESS IN EUROPE because the know they won't sell much at the high price.
--
they will get what they deserve - nobody will buy the game at launch, after weeks the price will be 20 EUR and we the customers will be happy.
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This must be one of the most regrettable decisions they ever took. They are in financial trouble? No bloody wonder with ill-judged marketing decisions like this. The European market may not be as big as the US, but it is still pretty huge and they will soon find out that they cannot pull anything like this without it biting them really hard in the arse.